[Q3 2024 Performance Overview](index=1&type=section&id=Q3%202024%20Performance%20Overview) Alexander & Baldwin reported strong Q3 2024 financial results, with significant growth in FFO and net income, alongside solid Commercial Real Estate performance [Q3 2024 Highlights](index=1&type=section&id=Q3%202024%20Highlights) Alexander & Baldwin reported strong Q3 2024 results, highlighted by significant growth in Funds From Operations (FFO) and solid performance in its Commercial Real Estate (CRE) portfolio, including a 4.1% increase in Same-Store Net Operating Income (NOI) Q3 2024 Key Performance Indicators | Metric | Value | | :--- | :--- | | Funds From Operations (FFO) | $28.2 million ($0.39/share) | | Adjusted FFO | $23.4 million ($0.32/share) | | CRE Same-Store NOI Growth | 4.1% | | Leased Occupancy (as of Sep 30, 2024) | 94.0% | | Comparable Blended Leasing Spreads | 15.3% | - The company successfully closed on the acquisition of an **81,500 square foot** food and distribution facility, demonstrating its strategy of recycling capital and growing its industrial portfolio[2](index=2&type=chunk)[8](index=8&type=chunk) - CEO Lance Parker noted that strong performance in both CRE and Land Operations led the company to **raise its 2024 guidance** Strategic actions were also taken to support growth, including establishing a **new at-the-market (ATM) equity program** and **recasting the revolving credit facility**[3](index=3&type=chunk) [Financial Results for Q3 2024](index=1&type=section&id=Financial%20Results%20for%20Q3%202024) The company's net income available to common shareholders grew to $19.0 million, or $0.26 per diluted share, a significant increase from the prior year Q3 2024 vs. Q3 2023 Financial Comparison | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income to Shareholders | $19.0 million | $14.6 million | +30.1% | | Diluted EPS | $0.26 | $0.20 | +30.0% | | FFO | $28.2 million | $21.2 million | +33.0% | | FFO per Diluted Share | $0.39 | $0.29 | +34.5% | | Adjusted FFO | $23.4 million | $17.4 million | +34.5% | | Adjusted FFO per Diluted Share | $0.32 | $0.24 | +33.3% | - Selling, general and administrative (SG&A) expense **decreased by 1.7%** to **$7.4 million** from **$7.6 million** in the same quarter of 2023[4](index=4&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) The company's Commercial Real Estate and Land Operations segments demonstrated strong performance in Q3 2024, driven by healthy organic growth, strategic acquisitions, and increased land sales [Commercial Real Estate (CRE) Operations](index=1&type=section&id=Commercial%20Real%20Estate%20%28CRE%29%20Operations) The Commercial Real Estate segment demonstrated healthy organic growth in Q3 2024, with increases in operating revenue, profit, and Net Operating Income (NOI) CRE Financial Performance (Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenue | $49.4 million | $48.2 million | +2.4% | | Operating Profit | $22.8 million | $20.6 million | +10.6% | | NOI | $32.4 million | $31.0 million | +4.4% | | Same-Store NOI | $32.2 million | $30.9 million | +4.1% | - The company executed **71** improved-property leases covering approximately **182,100 square feet** of gross leasable area (GLA)[6](index=6&type=chunk) - Comparable leasing spreads were strong at **15.3%**, comprising **18.2%** for retail spaces and **9.9%** for industrial spaces[6](index=6&type=chunk) Portfolio Occupancy (as of Sep 30, 2024) | Portfolio | Leased Occupancy | Change vs. Jun 30, 2024 | Change vs. Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Overall | 94.0% | +10 bps | -60 bps | | Retail | 92.9% | +10 bps | -110 bps | | Industrial | 97.4% | +30 bps | +60 bps | [CRE Investment Activity](index=3&type=section&id=CRE%20Investment%20Activity) During the third quarter, the company strategically recycled capital by acquiring an off-market distribution facility for $29.7 million - On September 20, 2024, the company acquired an **81,500-square-foot** distribution facility for **$29.7 million** The property is **fully leased** to Hansen Distribution Group[8](index=8&type=chunk) - The company is proceeding with the development of a **29,550-square-foot** pre-leased warehouse at Maui Business Park II, with construction expected to start in **early 2025** and an in-service date in **late 2025**[8](index=8&type=chunk) [Land Operations](index=3&type=section&id=Land%20Operations) The Land Operations segment reported a significant increase in profitability, with operating profit rising to $7.9 million in Q3 2024 from $2.9 million in the prior-year quarter - Operating profit for Land Operations was **$7.9 million** for Q3 2024, a substantial increase from **$2.9 million** in Q3 2023[9](index=9&type=chunk) - The profit increase was mainly due to **higher sales**, including an **81-acre parcel** on Maui and a lot at Maui Business Park, as well as **higher legacy joint venture income**[9](index=9&type=chunk) [Financial Position and Capital Management](index=3&type=section&id=Financial%20Position%20and%20Capital%20Management) The company maintained a strong financial position with substantial liquidity and a conservative debt profile, while enhancing flexibility through capital market initiatives and consistent shareholder returns [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) As of September 30, 2024, Alexander & Baldwin maintained a strong financial position with a total market capitalization of approximately $1.9 billion and a conservative debt-to-total market capitalization ratio of 25.3% Key Financial Metrics (as of Sep 30, 2024) | Metric | Value | | :--- | :--- | | Equity Market Capitalization | $1.4 billion | | Total Debt | $472.2 million | | Debt-to-Total Market Cap | 25.3% | | Total Liquidity | $445.9 million | | Net Debt to TTM Adj. EBITDA | 3.6x | - The company's debt has a weighted-average maturity of **2.9 years**, a weighted-average interest rate of **4.58%**, and **96.8%** of the debt is at fixed rates (including interest rate swaps)[10](index=10&type=chunk)[11](index=11&type=chunk) [Capital Markets and Dividends](index=4&type=section&id=Capital%20Markets%20and%20Dividends) The company enhanced its financial flexibility by establishing a new $200 million at-the-market (ATM) equity offering program and extending its revolving credit facility to 2028 - A new ATM equity program was established on August 13, 2024, allowing for the sale of up to **$200.0 million** in common stock No shares were sold under the new or expired programs in the current year[11](index=11&type=chunk) - Subsequent to the quarter's end, the company amended and extended its revolving credit facility to **October 2028**, maintaining its **$450.0 million** borrowing capacity[11](index=11&type=chunk) - A third quarter 2024 dividend of **$0.2225 per share** was paid on October 7, 2024[11](index=11&type=chunk) [2024 Full-Year Guidance](index=4&type=section&id=2024%20Full-Year%20Guidance) Reflecting strong year-to-date performance, the company has raised its full-year 2024 guidance across several key metrics Revised 2024 Full-Year Guidance | Metric | 2024 Revised Guidance | Prior Guidance | | :--- | :--- | :--- | | Net Income per diluted share | $0.74 to $0.82 | $0.64 to $0.73 | | FFO per diluted share | $1.27 to $1.35 | $1.17 to $1.26 | | Adjusted FFO per diluted share | $1.05 to $1.12 | $0.99 to $1.08 | | CRE Same-Store NOI growth % | 1.75% to 2.75% | 1.25% to 2.25% | FFO per Diluted Share Guidance Breakdown | Component | 2024 Revised Guidance | Prior Guidance | | :--- | :--- | :--- | | CRE and Corporate | $1.07 to $1.11 | $1.04 to $1.08 | | Land Operations | $0.20 to $0.24 | $0.13 to $0.18 | | **Total FFO per diluted share** | **$1.27 to $1.35** | **$1.17 to $1.26** | [Financial Statements](index=6&type=section&id=Financial%20Statements) The financial statements for Q3 2024 reflect increased operating revenue and net income, a stable balance sheet with growing assets, and positive cash flow from operations [Segment Data & Other Financial Information](index=6&type=section&id=Segment%20Data%20%26%20Other%20Financial%20Information) The company's total operating revenue for Q3 2024 was $61.9 million, up from $52.5 million in Q3 2023, driven by growth in both the Commercial Real Estate and Land Operations segments Q3 2024 vs. Q3 2023 Income Statement Highlights (in thousands) | Line Item | Q3 2024 (in thousands) | Q3 2023 (in thousands) | | :--- | :--- | :--- | | Total Operating Revenue | $61,944 | $52,495 | | CRE Operating Profit | $22,829 | $20,649 | | Land Operations Operating Profit | $7,881 | $2,878 | | Total Operating Profit | $30,710 | $23,527 | | Net Income Attributable to A&B | $19,004 | $14,649 | | Diluted EPS | $0.26 | $0.20 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet as of September 30, 2024, shows total assets of $1.650 billion, a slight increase from year-end 2023 Balance Sheet Summary (in thousands) | Account | Sep 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Real estate investments, net | $1,488,179 | $1,482,989 | | Cash and cash equivalents | $17,919 | $13,517 | | **Total Assets** | **$1,650,002** | **$1,646,241** | | **Liabilities & Equity** | | | | Notes payable and other debt | $472,179 | $463,964 | | **Total Liabilities** | **$651,820** | **$643,230** | | **Total Equity** | **$998,182** | **$1,003,011** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash provided by operating activities was $73.7 million Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Net Cash from Operations | $73,674 | $43,613 | | Net Cash from Investing | ($25,847) | ($19,353) | | Net Cash from Financing | ($43,425) | ($43,220) | | **Net Change in Cash** | **$4,402** | **($18,960)** | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP financial measures including NOI, FFO, Adjusted FFO, Net Debt, and Adjusted EBITDA to offer additional insights into its operational and financial performance [NOI and Same-Store NOI](index=9&type=section&id=NOI%20and%20Same-Store%20NOI) The company utilizes Net Operating Income (NOI) and Same-Store NOI as key non-GAAP metrics to assess the unlevered performance of its Commercial Real Estate portfolio - Management believes NOI provides **useful information** because it reflects **contract-based income** and **cash-based expenses** at the property level, removing the effects of non-cash items like depreciation and straight-line rent adjustments[22](index=22&type=chunk) Reconciliation of CRE Operating Profit to Same-Store NOI (Q3, in thousands) | Line Item | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | CRE Operating Profit | $22,829 | $20,649 | | Adjustments (Depreciation, etc.) | $9,539 | $10,362 | | **NOI** | **$32,368** | **$31,011** | | Less: Non-Same-Store NOI | ($212) | ($132) | | **Same-Store NOI** | **$32,156** | **$30,879** | [Funds From Operations (FFO) and Adjusted FFO (AFFO)](index=10&type=section&id=Funds%20From%20Operations%20%28FFO%29%20and%20Adjusted%20FFO%20%28AFFO%29) FFO and Adjusted FFO are used as supplemental measures to evaluate performance in comparison to other REITs - Management uses FFO to provide an indication of the company's **ability to service debt and fund capital needs** Adjusted FFO further refines this by **excluding certain items not related to ongoing property operations** to **enhance comparability**[26](index=26&type=chunk)[27](index=27&type=chunk) Reconciliation of Net Income to FFO and Adjusted FFO (Q3, in thousands) | Line Item | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Net Income to Shareholders | $18,998 | $14,628 | | Depreciation & Amortization (CRE) | $8,932 | $9,166 | | (Income) loss from disc. ops. | $300 | ($3,894) | | **FFO** | **$28,230** | **$21,150** | | Adjustments | ($4,803) | ($3,723) | | **Adjusted FFO** | **$23,427** | **$17,427** | [Net Debt](index=12&type=section&id=Net%20Debt) Net Debt, a non-GAAP measure, is calculated by adjusting total debt for unamortized costs and subtracting cash Net Debt Reconciliation (in thousands) | Line Item | Sep 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Debt | $472,179 | $463,964 | | Net unamortized costs | $329 | $149 | | Cash and cash equivalents | ($17,919) | ($13,517) | | **Net Debt** | **$454,589** | **$450,596** | [EBITDA and Adjusted EBITDA](index=13&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) The company reports EBITDA and Adjusted EBITDA to evaluate operating performance Consolidated Adjusted EBITDA Reconciliation (TTM, in thousands) | Line Item | TTM Sep 30, 2024 (in thousands) | TTM Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net Income (Loss) | $44,856 | $32,963 | | D&A, Interest, Taxes | $59,507 | $59,789 | | **Consolidated EBITDA** | **$104,375** | **$93,248** | | Adjustments | $20,430 | $14,837 | | **Consolidated Adjusted EBITDA** | **$124,805** | **$108,085** |

Group 1 - Alexander & Baldwin, Inc. has amended its revolving credit facility, extending the term to October 2028 with two six-month extension options and providing a borrowing capacity of $450 million [1] - The interest rate under the amended facility remains unchanged at SOFR plus 1.05%, with a SOFR adjustment of 0.10%, and the facility fee is also unchanged at 0.15% [1] - The company is the only publicly-traded real estate investment trust focusing exclusively on Hawai'i commercial real estate and is the largest owner of grocery-anchored neighborhood shopping centers in the state [3] Group 2 - Alexander & Baldwin, Inc. owns, operates, and manages approximately 4.0 million square feet of commercial space in Hawai'i, including 22 retail centers, 14 industrial assets, and four office properties [3] - The company has a 154-year history and has played a leadership role in the development of various industries in Hawai'i, including agriculture, transportation, tourism, construction, and commercial real estate [3]

Company Overview - Alexander & Baldwin, Inc. (A&B) is the only publicly-traded real estate investment trust focusing exclusively on Hawai'i commercial real estate [3] - A&B is the largest owner of grocery-anchored neighborhood shopping centers in Hawai'i, managing approximately 4.0 million square feet of commercial space [3] - The company's portfolio includes 22 retail centers, 14 industrial assets, four office properties, and 142 acres of ground lease assets [3] Upcoming Earnings Report - A&B will report its third quarter 2024 results after the market closes on October 24, 2024 [1] - A conference call and webcast will be held on the same day at 5:00 p.m. ET to discuss the operating and financial performance for the third quarter [1] - Key company participants in the call will include Lance Parker (CEO) and Clayton Chun (CFO) along with other senior management members [1]

Matteo Colombo/DigitalVision via Getty ImagesIntroduction Alexander & Baldwin (NYSE:ALEX) has marginally underperformed the Vanguard Real Estate Index Fund ETF (VNQ) so far in 2024, delivering a ~6% total return against the 9% gain for the benchmark ETF: ALEX vs VNQ in 2024 (Seeking Alpha)I also covered the shares back in June, arguing they were undervalued on an enterprise-level basis. Taking into account the recent price rally, increased Fed rate cut expectations, and the REIT's Q2 2024 earnings, I be ...

Economic Overview - Recent mixed economic signals have led to significant market fluctuations, with major indices experiencing volatility due to weaker-than-expected job reports and lower PMI figures, raising recession fears [1] - Positive CPI data contributed to a strong market performance, marking the best week of the year for the S&P 500 [1] Federal Reserve Actions - Federal Reserve Chair Jerome Powell indicated that rate cuts are likely in September, with market sentiment shifting significantly regarding the probability of a 50 basis points rate cut [1][2] - The probability of a 50 bps rate cut increased from 11.3% to 38.5% following Powell's remarks [1] Dividend Stocks in Rate-Cutting Environment - Dividend stocks may become more attractive as investors seek yield in a low-rate environment, with cheaper debt financing potentially leading to reinvestment opportunities [3] - Historical data shows that dividend payers tend to outperform non-dividend payers following rate cuts, with dividend growers performing the best [3] Sectors Benefiting from Declining Rates - Key sectors that typically outperform in a declining rate environment include Real Estate, Financials, and Consumer stocks [4] - Lower interest rates can enhance demand for real estate and increase consumer spending, benefiting consumer discretionary stocks [4] - Financial institutions may see increased revenue from higher loan origination volumes despite lower net interest margins [4] Highlighted Dividend Stocks 1. **Alexander & Baldwin, Inc. (ALEX)** - Forward Dividend Yield: 4.67%, Market Capitalization: $1.38B, Strong Buy rating [9] - The company is positioned to pursue growth opportunities post-rate cut, despite challenges from COVID and the 2023 Maui wildfires [9][11] - ALEX has a strong three-year CAGR dividend growth rate of 24.49% and a below-average cash dividend payout ratio [12] 2. **Ingredion Incorporated (INGR)** - Forward Dividend Yield: 2.36%, Market Capitalization: $8.59B, Strong Buy rating [13] - The company has recorded strong profitability due to volume growth and lower input costs, with a low cash dividend payout ratio of 19.96% [14][16] - INGR has a trailing twelve-month dividend growth rate of 9.86% and 13 consecutive years of dividend growth [16] 3. **Synchrony Financial (SYF)** - Forward Dividend Yield: 2.12%, Market Capitalization: $18.65B, Strong Buy rating [17] - The company has returned $400M to shareholders in Q2 2024 and is focused on disciplined credit management [19][20] - SYF is trading at a deep discount relative to sector medians, with a forward P/E of 6.10, indicating strong valuation potential [22] Conclusion - Dividend stocks are positioned to benefit from potential rate cuts, with ALEX, INGR, and SYF highlighted as attractive investment opportunities due to their strong yields and financial profiles [22]

EDWARDSVILLE, IL, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Flint Cooper is proud to announce that Alex Parker has been appointed to the Leadership Development Committee (LDC) for the Suboxone (Buprenorphine/Naloxone) Film Products Liability Litigation, MDL No. 3092. This appointment by the United States District Court for the Northern District of Ohio, Eastern Division, underscores Parker’s commitment to mass tort litigation and his potential as a future leader in this field. “Alex Parker’s appointment to the Lead ...

Investors in Alexander & Baldwin, Inc. (ALEX) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 20, 2024 $15 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...

From a technical perspective, Alexander & Baldwin Holdings, Inc. (ALEX) is looking like an interesting pick, as it just reached a key level of support. ALEX's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks abo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________ to _________________ Commission file number 001-35492 ALEXANDER & BALDWIN, INC. (Exact name of registrant as specified in its charter) (State or ot ...

Premier Commercial Real Estate Company Second Quarter 2024 Earnings Presentation July 25, 2024 Safe Harbor Statement Statements in this presentation that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. These forward-looking statements include, but are not limi ...